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AUSTIN, Texas – Summit Hotel Properties, Inc. (NYSE: NYSE:) disclosed its financial results for the fourth quarter, revealing a loss per share of -$0.16, which fell short of the analyst consensus estimate of -$0.09. However, the company’s revenue for the quarter stood at $177.44 million, slightly surpassing the consensus estimate of $176.54 million.
In comparison to the same quarter last year, the company’s revenue reflected an increase, indicative of a positive trajectory in its operations. The firm’s adjusted funds from operations (FFO) per diluted share for the full year were reported at $0.92, while the net loss attributable to common stockholders was $28.0 million, or -$0.27 per diluted share, compared to a net loss of $16.9 million, or -$0.16 per diluted share, in the previous year.
The company’s President and CEO, Jonathan P. Stanner, expressed pride in the company’s achievements throughout the year, highlighting a 6.6% growth in revenue per available room (RevPAR), which outpaced the industry average. This growth was primarily driven by strong performances in urban hotels.
Summit Hotel Properties also continued its strategic asset sales, disposing of six hotels since the beginning of 2023 for nearly $50 million. These sales were made at an attractive blended capitalization rate of 2.6 percent after accounting for foregone capital expenditures. The proceeds from these sales were partially reinvested into two high-quality hotels in high-growth markets.
Looking ahead, the company provided guidance for adjusted FFO per diluted unit, projecting a range of $0.90 to $1.00. This guidance indicates the company’s expectations for its financial performance in the coming period.
Despite the mixed results, the company’s stock experienced a slight uptick of +0.07% following the earnings release, suggesting a relatively stable market response given the minor change.
Summit Hotel Properties remains optimistic for 2024, supported by stable demand trends and the expectation that growth in urban markets will continue to lead portfolio performance. The company believes it is well-positioned to outperform the broader industry in the upcoming year.
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